Mgt 599 module 4 | MGT 599

Module 4 – Case

STRATEGY IMPLEMENTATION AND STRATEGIC CONTROLS

Assignment Overview

This final case involves an analysis of strategy implementation at Pepsico. You will use the resources you identified in the SLP to gather information about the company and relate that information to your work in the previous cases.

Required Reading

Refer to the required and optional readings related to strategy implementation and strategic controls, the themes for this module.

Case Assignment

In Module 4, we will conclude the case study process by researching Pepsico’s strategic controls and their fit with the company’s chosen strategy.

Keys to the Assignment

· Step One: Review your Case papers from Modules 1-3 so that you are familiar with the mission, vision, SWOT, strategy, and strategic choices you have identified over the course of the class.

· Step Two: Research the structure, systems, people, and culture at Pepsico. You will not be able to get answers to every single question, but you will need to answer at least one or two for each component.

· Step Three: Describe Pepsico’s organizational design, key strategic control systems (e.g., budgeting and variance analysis systems), primary human resources concerns, and cultural factors, and the effect that these have had on the implementation of Pepsico’s strategy.

· Step Four: In a 6- to 8-page paper, critically evaluate the fit—or the lack of fit—between the company’s mission, strategy, and organizational components crucial to implementation. Do these components complement the strategy? Why or why not?

· Step Five: Choose three of the 13 ethical “prescriptions” included in the following article: https://www.scu.edu/ethics/focus-areas/business-ethics/resources/incorporating-ethics-into-the-organization/ . Next, discuss the extent which the company’s sense of business ethics has been embedded within its strategic management process, as evidenced by your chosen three indicators.

· Step Six: What changes would you—as the CEO—make to better assure the success of the company’s strategy? This is the most important section of the Module 4 Case.

· Step Seven: Consider the Case as a formal business report that you are developing for the Board of Directors and CEO as Pepsico’s consultant. This is a professional document. Follow the format below:

o Executive summary: This is a synopsis of the main points, conclusions, and recommendations made in the longer report. If you would like a refresher on writing an executive summary, check this website: http://www.csun.edu/~vcecn006/summary.html

o Introduction: State the main purpose of the paper (thesis statement), what you hope to accomplish, and how you will go about doing it.

o Main Body: The “meat” of the paper. Emphasize analysis, not just description. Delineate separate topics or sections with headings.

o Conclusion: Summarize your paper in the light of your thesis statement.

Assignment Expectations

Your paper will be evaluated using the grading rubric.

Tips and Suggestions

Note the following tips and suggestions:

· Business school case-study assignments are meant to offer practice opportunities for future business people who are earning their MBA degrees. Consider yourself a consultant hired by the company to make these critical assessments. There are no right or wrong answers to the Case question, as long as your position is well defended.

· Study the theoretical concepts provided in the Background materials section of the module, and identify main strategy concepts.

· Include a cover page and reference page, in addition to the 6-8 pages of analysis described above. You must meet minimum length requirements.

· Include section headings as appropriate.

· Cite and reference all sources, including those you paraphrase. This means include citations and quotation marks for direct quotes of more than five words, and citations for information you have “borrowed” or paraphrased from other sources.

· Follow Trident Guidelines for Well-Written Papers.

· Submit your analysis by the end of this module.

Module 4 – SLP

STRATEGY IMPLEMENTATION AND STRATEGIC CONTROLS

Simulation

In Module 4, you will continue with the CVP analysis you completed in the Module 3 SLP.

Scenario Continuation:

It is still January 2, 2013. You have just completed your revised SLP3 strategy using CVP analysis, and you are eager to implement your decisions for 2013 through 2016.

Using the CVP analysis from SLP3, run the simulation for a final time. Again, be sure to take notes about your analysis and document the reasoning behind your decisions.

Finalize your report showing the strategy you have used.

Assignment Overview

Using the strategy that you developed in SLP3, run the simulation. Document your results as you did previously. Review and analyze these results, and develop a final strategy.

Please turn in a 6- to 8-page paper, not including cover and reference pages.

Keys to the Assignment

The key aspects of this assignment that should be covered and taken into account in preparing your paper include:

· The revised strategy consists of the Prices, R&D Allocation %, and any product discontinuations for the W1, W2, and W3 tablets for each of the four years: 2013, 2014, 2015, and 2016.

· You must present a rational justification for this strategy. In other words, you must provide support for your proposed strategy using financial analysis and relevant theories.

· Use the CVP Calculator and review the PowerPoint that explains CVP and provides some examples.

· You will need to crunch some numbers (CVP Analysis) to help you determine your prices and R&D allocations.

· Make sure your proposed changes in strategy are firmly based in this analysis of financial and market data and sound business principles. Your goal is to practice using CVP and get better at it.

· Present your analysis professionally, making strategic use of tables, charts, and graphs.

Time Line Summary:

SLP1

· 2016: Hired on December 31, 2016.

· Turned in first report to CEO Smothers.

SLP2

· You are returned – via Time Warp – to January 1, 2013.

· You make decisions for 2013 – 2016.

· December 31, 2016 – You have revised all four years, and you write up your summary report.

SLP3

· Apparently, your SLP2 decisions were not “good enough,” as you have again been returned to January 1, 2013.

· It is once again January 1, 2013: You decide to use CVP analysis to develop a revised four-year plan for your strategy. You analyze the results of your first decisions from SLP2, taking notes, and documenting your decision-making process. You use the CVP Calculator to help you develop your strategy. Your notes explaining the logic behind your decisions.

SLP4

· It is still January 1, 2013. Using your CVP analysis from SLP3, you run the simulation, implementing your revised four-year plan. You keep track of your financial and marketing results year over year.

· You submit your final 6- to 8-page report, which includes your Final Total Score.

· You compare – and report – your results with previous results.

SLP Assignment Expectations

Your paper will be evaluated using the grading rubric.

Tips and Suggestions

Note the following tips and suggestions:

You might find these downloads useful:

Decision Matrix Table – Download this Word doc with a blank table you can use to show your proposed strategy decisions.

PowerPoint discussing CVP – Provides a good overview of Cost Volume Profit analysis, the various equations that you can use, and how to use it. Some examples are provided showing how to use the CVP Calculator.

CVP Calculator – This an Excel-based calculator that you can use to determine prices, volumes, and profits. Keep in mind that it will tell you what need, but the market determines what you actually get.

· Include a cover page and a reference page, in addition to the 6-8 pages of analysis described above.

· Include appropriate section headings.

· Use charts and graphics strategically, but do not use these as “space fillers.” Include lengthy tables, etc., in an Appendix instead.

· Cite and reference all sources that you use in your work, including those that you paraphrase. This means include citations and quotation marks for direct quotes, and citations for that information which you have “borrowed” or paraphrased from other sources.

· Follow Trident Guidelines for Well-Written Papers.